Why SINA Shares Plunged
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What: Shares of SINA have plunged by as much as 16% today after the company reported earnings with soft guidance.
So what: Non-GAAP revenue in the third quarter came out to $147.7 million, which resulted in non-GAAP earnings per share of $0.17. SINA's Weibo micro-blogging service is off to a strong monetization start, with ad revenue doubling sequentially. The company began sharing revenue with developers.
Now what: Those figures were ahead of Street forecasts, but SINA's guidance left a lot to be desired. Fourth-quarter adjusted revenue is expected to be in the range of $132 million to $136 million, well short of the $152 million that analysts and investors were hoping for. Citi downgraded the stock by two notches, from buy to sell, in the wake of the results.
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The article Why SINA Shares Plunged originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend SINA. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.